(Answered) Suppose real gdp is growing 5 percent the money supply is

Economics

Suppose real GDP is growing 5 percent, the money supply is growing at 10 percent, the velocity of money is growing at 1 percent, and the real interest rate is 2 percent.

a. What is the current inflation rate and nominal interest rate?

b. If the money supply growth rate increases to 12 percent, how will your answers in part (a) change?

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